EU finance ministers’ plan creates political difficulties for Rome and it doesn’t answer the long-term debt question.
Salvini’s right-wing League described Thursday night’s deal as a fiasco for Italy.
Most worrying, the co-governing Five Star Movement has joined the country’s crusade against the ESM.
The second danger is long-term debt sustainability. Whether they borrow from the ESM, the Commission’s labor market scheme or the financial markets, euro zone members will still accumulate debt on their own.
For all this week’s focus on the finance ministers, the euro zone will keep being held together by its central bank.
Bloomberg 10 April 2020
Most worrying, the co-governing Five Star Movement has joined the country’s crusade against the ESM.
The second danger is long-term debt sustainability. Whether they borrow from the ESM, the Commission’s labor market scheme or the financial markets, euro zone members will still accumulate debt on their own.
For all this week’s focus on the finance ministers, the euro zone will keep being held together by its central bank.
Bloomberg 10 April 2020
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